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What is the ECO4 Scheme?

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ECO4 is a government-supported initiative that has been put in place to help reduce household carbon emissions and provide more energy efficiency measures to UK homes. Through the ECO4 Scheme, homes could receive discounted (or free) home insulation, an upgraded boiler or green heating system. However, only the most energy-inefficient homes can benefit from ECO4, meaning that your property must have an Energy Performance Certificate (EPC) of D or lower.

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ECO4 was introduced by the government in April 2022 and will run until 31 March 2026.

The scheme is part of the government’s commitment to making all housing stock more energy efficient by 2035.

It’s a continuation of ECO3, but with some important changes that are designed to make the scheme more customer-friendly, such as a greater focus on low-income households and areas of high fuel poverty.

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What’s Covered in the ECO4 Scheme?

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The ECO4 scheme covers a range of energy saving solutions that can be applied to existing homes, such as:

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Insulation

Installing insulation is the most common benefit from the ECO4 Scheme, helping homes save up to £1 ,800 a year. Cavity wall, solid wall, room in a roof and loft insulation are some of the insulation measures available through ECO4, but this depends on individual household circumstances. The ECO4 Scheme takes a fabric-first approach, meaning that it aims to make properties more energy efficient before considering any other measures, like heating upgrades.

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Green heating systems

The installation of green heating systems, such as air-source heat pumps and biomass boilers is also covered by the ECO4 scheme. These state-of-the-art heating systems can be used to replace outdated, inefficient boilers and can provide households with up to a 25% reduction in their energy bills. Households can still benefit from solar panel installation through the ECO4 Scheme; however, this is only if a heat pump or biomass boiler has been ruled out.

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Replacing boilers

Not every boiler will be replaced with a heat pump, and so the ECO4 scheme provides funding for upgrading existing boilers to make them more efficient. Through the ECO4 Scheme, households can make the most of their boilers and use them up to their fullest potential (typically 12 years). ‘Boiler repair’ is also covered by the ECO4 Scheme, which can include diagnostics, cleaning and repairs to help restore boilers.

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Solar PV installation

The ECO4 scheme offers solar panel grants to support the installation process. These grants aim to make solar energy accessible to a wider range of households, particularly those classified as low-income or receiving state benefits. To qualify, properties often need to meet certain criteria, such as having an Energy Performance Certificate (EPC) rating that indicates room for improvement in energy efficiency. 

Implementing solar panels through the ECO4 scheme is a practical, cost-effective approach to achieving greater energy efficiency and ecological sustainability in our homes. Proper assessment, financial planning, and grant opportunities play pivotal roles in this endeavour.